Reports are hitting the streets that The Hobbit has finally gotten the go ahead for formal production – TheWrap reports that the production has been given the green light, with Peter Jackson agreeing to direct in addition to his producing and writing duties, although The Hollywood Reporter says that the acting union issue is still a key hurdle to be overcome to make the hoped for February filming date, and that the MGM debt/funding issue is not necessarily settled, but shouldn’t be a stopper.

Update: – It’s official now, as New Line president Toby Emmerich, Warner Bros. President Alan Horn, and MGM co-CEO Steve Cooper jointly announced it, with principle photography to begin in February.